Ethereum’s DeFi Dominance May Be Eroding Amid Solana and Tron Gains

• Ethereum holds 67.65% of total DeFi value locked, far ahead of Solana’s 8.9%.

• Solana is surpassing Ethereum in daily active addresses and transaction volumes due to lower fees.

• Tron has captured 25.78% of stablecoin issuance, challenging Ethereum’s 55.55% lead with growing market share.

Ethereum DeFi dominance faces challenges from Solana and Tron in 2025. Explore how rivals are eroding ETH’s lead with rising activity and developer interest—stay ahead in the evolving crypto landscape today.

What is Ethereum’s DeFi dominance status in 2025?

Ethereum DeFi dominance remains strong at 67.65% of total activity, according to DeFiLlama data, making it the primary platform for decentralized finance applications. However, this lead is narrowing as alternatives like Solana demonstrate superior scalability, attracting more users and developers. Ethereum’s established infrastructure continues to support the majority of DeFi protocols, but emerging chains are reshaping the competitive dynamics.

How are competitors challenging Ethereum’s DeFi position?

Competitors are eroding Ethereum’s DeFi dominance through enhanced performance and cost efficiency. Solana, for instance, processes transactions at a fraction of the cost, leading to higher daily active users. Data from Santiment indicates Solana’s network activity has consistently outpaced Ethereum’s in recent months, with transaction volumes reflecting this surge.

According to DeFiLlama, Ethereum continues to command a massive 67.65% share of total DeFi activity, dwarfing rivals like Solana (8.9%), Binance Smart Chain (BSC) [BNB] (6.67%), and Bitcoin [BTC] (6.75%).

Yet, that lead is beginning to narrow.

Source: DeFiLlama

Tron and BNB Chain are also making strides, particularly in stablecoin markets where they offer competitive advantages in speed and interoperability. Expert analysis from blockchain analysts, including insights shared in recent reports by CoinGecko, highlights that Ethereum’s high gas fees remain a barrier, pushing users toward these alternatives. For example, Solana’s developer community has grown by over 20% in the past quarter, per Santiment metrics, fostering innovation in DeFi applications.

Source: CoinGecko

Despite a 2.5% daily dip, ETH gained 5.6% over the week. However, competitors like Solana and Binance [BNB] are gaining traction, continuing to challenge Ethereum’s long-standing dominance. This competition is driving broader adoption of DeFi, benefiting the entire sector as protocols migrate or multichain strategies emerge.

Frequently Asked Questions

Is Ethereum losing its DeFi dominance to Solana in 2025?

Ethereum’s DeFi dominance stands at 67.65%, but Solana is closing the gap with 8.9% market share and superior daily active addresses. According to Santiment, Solana’s transaction volume has exceeded Ethereum’s for several months, driven by lower costs and faster processing, though Ethereum retains a vast ecosystem of established protocols.

Why is Tron gaining market share in stablecoins against Ethereum?

Tron has secured 25.78% of the stablecoin market, up from previous periods, thanks to its efficient network for high-volume transfers. DeFiLlama reports show this growth challenges Ethereum’s 55.55% hold, as Tron’s low fees attract stablecoin issuers and users seeking scalable alternatives without compromising security.

Key Takeaways

• Ethereum DeFi leadership persists: With 67.65% of activity, Ethereum remains the core hub, supported by robust smart contract capabilities.
• Solana’s rise in usage: Leading in active addresses and developer growth, Solana’s metrics from Santiment underscore its momentum in everyday DeFi interactions.
• Diversifying stablecoin landscape: Tron’s 25.78% share signals the need for Ethereum to innovate, potentially through layer-2 solutions for sustained dominance.

Conclusion

Ethereum’s DeFi dominance in 2025 holds firm at over two-thirds of the market, yet the encroaching influence of Solana, Tron, and BNB Chain highlights an evolving competitive arena. As network activity shifts toward more efficient platforms, Ethereum must leverage its foundational strengths to adapt. Investors and developers should monitor these trends closely, positioning themselves for opportunities in this dynamic blockchain environment.

Competitors are closing in on ETH

Tron gains ground

DeFiLlama data shows Ethereum still leads stablecoin issuance with 55.55% market share, but its dominance has slipped.

Source: DeFiLlama

TRON [TRX] captured a significant 25.78% share of the $302.17 billion market. BSC and Solana follow with 4.42% and 4.36%, respectively, while emerging chains like Base [BASE] and Arbitrum [ARB] each hold just over 1%.

Despite a modest 0.24% weekly decline in total stablecoin market cap, Tron’s growing foothold is challenging Ethereum’s long-standing control.

A change in activity

While Ethereum remains the dominant layer in DeFi and stablecoin ecosystems, Solana is quietly outpacing it in network usage.

Source: Santiment

Over recent months, Solana has consistently led in daily active addresses and transaction volume, even as Ethereum’s developer activity has plateaued.

Source: Santiment

Ethereum’s development activity score was near 14.3, trailing Solana’s 21.5 at press time.

Higher usage and faster development growth mean a meaningful shift in market momentum. Perhaps Ethereum’s lead has more challenge than before.